Suppose GDP in this country is $1,540 million. Enter the amount for consumption

Question

Suppose GDP in this country is $1,540 million. Enter the amount for consumption National Income Account Government Purchases (G) Taxes minus Transfer Payments (T) Consumption (C) Investment (I) Value (Millions of dollars) 350 455 490 Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. National Saving (S) = Y-million Y-T-G G-T Y-C-G Complete the followinghg national income accounting identities to calculate private and public saving. In your calculations, use data from

Explanation / Answer

Y=C+I+G+NX

where NX=0(net exports not given)

C=Y-I-G=1540-490-350=700

1- National savings will be G-T which is government purchases-(taxes-transfer payments).

As public savings are negative, govt is running a deficit.

G-T=350-455=-105

2- Private savings will be Y-T-C=1540-455-700=385

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.